How to record journal entries of sale and warranty costs

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Question - On January 1, 2017, Cullumber Ltd. sold on account 1,400 units of its product for a total price of $557,000 and a cost of $457,000. The products have a one-year assurance-type warranty and Cullumber estimates that the cost will be $24,600. By the company's year-end December 31, 2017, actual warranty costs related to the products sold was $18,700, paid in cash.

How to record journal entries of sale and warranty costs?

Reference no: EM132164733

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